Financial stress tends to be something that people deal with in private. Whether it’s from embarrassment or a reluctance to ask for help, many only seek financial help when debt becomes impossible to manage. While the internet is filled with budgeting tips and strategies for paying off credit card debt, sometimes going it alone isn’t the best option. Here at Lendah, we specialize in matching our customers with the right loan program to fit their financial needs. However, we are often asked: how does Lendah work to reduce credit card debt?
Credit Card Debt
First and foremost, when it comes to credit card debt, you have to remember that you are not alone. Millions of Americans are swamped with credit card debt, especially in the wake of the pandemic and the rise of inflation. Consumers have to rely more on credit to make everyday purchases as the cost of necessities increases. This also has an impact on the trajectory of debt repayment. CNN reports that Americans with credit card debt have an average balance of $5,525, while the average credit card interest rate currently sits at well over 16%.
The article also states that “people who fall behind on payments, a high debt load and a high annual percentage rate (APR) can combine in the worst possible way, often creating a cycle of high-interest debt payments consumers can’t escape from. And, even for those who can keep up with monthly payments, too much credit card debt can keep them from reaching other financial goals, like saving for the future.” So how does Lendah combat the seemingly endless cycle of debt repayment? Through debt consolidation.
What is Debt Consolidation?
Debt consolidation is one of the most effective ways to pay off credit card debt quickly, especially if you have multiple accounts. By obtaining a personal loan that covers the amount that you need to repay across your accounts, you can pay off your credit card debts and consolidate that debt into a fixed-interest loan. If the interest rate on the personal loan is lower than your credit card rates, you may be able to reduce your overall debt in a shorter period of time. Personal loans for credit card debt can also reduce your monthly payment as well.
With consistent payments and improved credit card usage, those who have utilized a debt consolidation plan have not only achieved a debt-free lifestyle but also improved their credit score and financial well-being.
How Does Lendah Work For You?
Lendah’s debt consolidation loan programs are designed based on the individual needs of the client. We understand that loans aren’t one-size-fits-all, and that’s why we have partnered with over 30 lenders to make sure that you have plenty of options that suit your budget. As with most loans, your rates and approvals will vary based on your credit history and health, but Lendah offers rates as low as 5.99% and pre-approvals up to $35,000.
We start the process by offering a free consultation in order for our financial experts to determine the best path for you individually. Then, if you are approved for a loan, we work with you to maintain your monthly payment and help you build better financial habits to secure your future after you’ve paid off your loan.
If you want to learn more about our debt consolidation loans, check out this blog post.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324, and we’ll get you connected immediately with one of our loan experts.